Mwana Africa, the Africa focused resource developer, has entered into a joint venture with Chinese player Zhejiang Hailiang for a copper project in the Democratic Republic of Congo (DRC).
The agreement covers 28 licences owned by Societe d'exploration Miniere du Haut Katanga (SEMHKAT), in which Mwana has a 100% holding. The total area amounts to over 4,000 square kilometres in the Katanga province of the DRC.
Under the agreement, Hailiang will invest $25m over four years, eventually earning a 62% voting interest in the project.
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Hailiang also has a further six month option over the Kibolwe prospect, also in the DRC. If it exercises this option, it will invest a further $15m and the prospect will become a development company.
Kalaa Mpinga, Chief Executive Officer of Mwana, said: "The Hailiang Group is an established player in the copper industry and today's $40m agreement reinforces the prospectivity of our SEMHKAT copper licences in the DRC.
"This joint venture allows our copper exploration and development programmes, in what is Africa's highest grade copper belt, to be significantly accelerated.
"We are also very excited at the prospect of advancing Kibolwe in the near term. This agreement is the first example of the Chinese related opportunities available to the company following the introduction of China International Mining Group Corporation to the share register earlier this year."
Mwana shares were up 7% at 11:01.
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